China’s ambassador to T&T Huang Xingyuan on Thursday insisted that the proposed US$750 million infrastructure ($4.8 billion) loans from the Asian giant would be used to benefit T&T’s population and not to bolster the political fortunes of the ruling coalition in the run-up to the 2015 general election. During her official visit to China last month Prime Minister Kamla Persad-Bissessar signed an agreement to advance a US$750 million loan proposal to China’s Ex-Im Bank to construct a port at La Brea and six industrial parks.
At a news conference on Monday, Rowley said the Prime Minister wanted to borrow the US$750 million “to spend on projects against a timeframe of an imminent election,” clearly suggesting the politicisation of the concessionary financing.
But speaking through an interpreter at a news conference at the Chinese embassy in Port-of-Spain, Ambassador Huang said: “I would stress that the funding from China would be used in projects for the benefit of T&T people. It is not our consideration whether this funding meets with the campaign or any other thing.”
Told that Rowley had claimed that the loan funding from China would be used for electioneering purposes, the ambassador said: “What I would stress is that the relationship between our two countries is not for four years, but for 40 years or more. “In the past, no matter which government was in power, I have seen that they have focused on the friendship and cooperation between our two countries. “This cooperation is not based on a slogan but is demonstrated by mutual support in many fields.”
The ambassador said the T&T people have a need for the construction of infrastructure and the Chinese side has made a positive response. He added: “The development and diversification of the T&T economy is in the interest of the T&T people and has been embraced by both the current administration and previous ones.”
During his state visit to Port-of-Spain last year, China’s president Xi Jinping promised to make US$3 billion available to the 15-member Caricom body to finance infrastructure projects. The US$750 million in projects proposed by the T&T government is being funded through this window, which is being managed by China’s Ex-Im Bank.
When it was pointed out T&T’s request accounts for 25 per cent of the amount that China proposes to spend in the region, the ambassador said both China and T&T will need to make “special efforts” to justify T&T getting one-quarter of the funds.
Huang said: “It is not intended that the US$3 billion will be distributed evenly. We must take everyone’s interests into consideration. We will assess where there are better projects that are more beneficial for the local people and that have done better preparation. The Chinese loans also need to meet risk evaluations that not every proposal will meet.”